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CRYPTO TERMS & DEFINITIONS

Unlock a better understanding of the markets using these Crypto Terms and Definitions from our WealthUnion analysts.

        

Price Chart Terms

 

Price Support:
Price support is an area on a price graph where buyers are willing to pay more for a security than sellers are willing to sell. When demand exceeds supply, the price declines until it reaches a point where there is equal demand and supply. At that point, the price rises again.

 

        

Price Resistance:

Contrary to price support, prices reach a certain level of previous strength, and supply exceeds demand. As a result, the price may either bounce back away from the previous level of strength or break through the level and continue in its prior direction until it hits another level of previous strength.

              

Price Retest:

A break and retest strategy happens when an asset makes a bullish or bearish breakout, retests the previous resistance or support, and then continues moving in the original trend.

  

Trendline:

Easily recognizable lines traders draw on charts to connect a series of prices or show some data's best fit. The resulting line gives the trader a good idea of how an investment's value might move.

                

Breakout/Breakdown:

An asset price moves outside a defined support or resistance level. Price moves upwards in a breakout and downwards in a breakdown.

                  

Trend:

A trend is a general pattern of prices that can last for weeks, months, or longer. When prices move in one direction for a sustained period, we say they're trending. An uptrend (also called a rising market) is a bullish trend where prices rise. A downtrend (also known as a falling market) is a bearish trend where prices fall.

      

Bear Market:

When a market experiences prolonged price declines, it typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

        

Bull Market:

The condition of a financial market in which prices are rising or expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything traded, such as bonds, real estate, (crypto)currencies, and commodities.

      

Relative Strength Index (RSI):

RSI is an indicator that measures the speed and change of stock prices. RSI ranges from zero to one (or zero to 100 on some charting platforms). It applies the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold.

      

William Percent Range (William %R):

An oscillation price indicator that shows whether a security is overbought or oversold. The Williams %R can help find support and resistance areas. The indicator bases itself on the work of Larry Williams, who invented the concept of the Williams %R in 1978. The calculation compares the current close to the highest and lowest prices during a given timeframe.

      

The Dow Jones Industrial Average (DJIA) or Dow Jones Index (DJI):

An American stock market index consisting of thirty widely held common stocks traded on the New York Stock exchange and Nasdaq and created by Charles H. Dow, Edward Jones, and Gustave Meyer in 1896.

          

Nasdaq Index (NDQ):

The Nasdaq Composite is an index that measures the performance of more than 3,000 securities that are all listed on the Nasdaq stock market.

              

Dollar Index (DXY):

DXY is a currency index that measures the strength of the U.S. dollar against a basket of foreign currencies. The index rises when the U.S. currency strengthens.

      

Consumer Price Index (CPI):

The Bureau of Labor Statistics measures the weighted average price of a basket of goods and service representative of aggregate U. S. household consumption expenditures.